NCAA Division III NCAA Division III

Bylaw 15 – Financial AidBylaw 15 – Financial Aid

Brandy HatawayJeff Myers

Session Outcome

Understand effective NCAA Division III Bylaw 15 compliance requires communication between athletics and any department that may touch the admissions and financial aid processes.

Provide you with the knowledge and tools to help you facilitate campus-wide communication and make that conversation effective.

Division III Philosophy Statement

• A member institution shall not award financial aid to any student on the basis of athletics leadership, ability, participation or performance.

Importance of Campus Communication?

Institutional Financial Aid Policies and Procedures

Need to Know

• NCAA Division III Financial Aid Committee.

• Financial Aid Reporting Process.

• Level I and Level II Review.

• Policies and Procedures Worksheet (Justification Document).

• Self Assessment.

Self-Assessment

• What is it? Review of the institution's nonneed-based financial aid awards and the policies and procedures for administering student financial aid as it relates to Division III financial aid bylaws.

• Who should be involved in the conversation? Director of athletics, director of financial aid, development office, admissions office, compliance, all other campus constituents with a role in the financial aid awarding process.

Self-Assessment

• Resources to use?

– NCAA Division III Manual (Bylaw 15 - financial aid).

– Annual financial aid school profile report.

– Copies of institutional financial aid policies and procedures.

– Copies of institutional awards applications and descriptions.

– Division III financial aid reporting program policies and procedures worksheet.

– Conference office and NCAA staff.

Review Format

• Bylaw.

• Examples.

• Enforcement Review.

• Self-Assessment.

NCAA Division III Bylaw 5.4.1-(a)

Consistent Financial Aid Package:

An institution shall not consider athletics leadership, participation or

performance when formulating a financial aid package.

NCAA Division III Bylaw 15.4.1(a)

ExamplesBylaw 15.4.1-(a)

• Criterion versus Consideration.

• The XX award is available to an incoming student who has maintained a cumulative 3.500 GPA, has participated in community service and was a varsity field hockey player in high school. – Criterion.

• The XX award is available to an incoming student who has maintained a cumulative 3.500 GPA, has participated in community service and extra curricular activities (e.g., music, drama, athletics) in high school. – Criterion/Consideration.

Examples Bylaw15.4.1-(a)

• Matrix Rating System.

– Institution uses high school extracurricular participation (i.e., athletics and arts) as part of its admissions rating matrix.

• Permissible?

Bylaws 15.4.1-(a) and 15.4.6

ExamplesBylaw 15.4.1-(a)

• Impermissible.– Institutions using an admissions matrix rating formula that

considers athletics leadership, ability, participation or performance must remove the athletics component if using the rating formula for financial aid purposes.

Bylaws 15.4.1-(a) and 15.4.6

Enforcement Review Bylaw 15.4.1-(a)

Violation 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

Consideration of athletics participation/leadership

15 4 5 4 2 5 6 4 6 51

Self-Assessment Bylaw 15.4.1-(a)

An institution shall not consider athletics leadership, participation or performance when formulating a financial aid package.

Questions to ask:

•Is the financial award based on the student-athlete's financial need?•What criteria are used for awarding nonneed-based aid? •Do we have a nonneed-based awarding policy?•Is there an application process for nonneed-based awards?•Who makes nonneed-based award decisions and are athletics personnel involved? •Are extracurricular activities considered in awarding nonneed-based aid?•Are leadership positions considered in nonneed-based awards?•What criteria are included in our award matrix?

Bylaw 15.4.1(a)

Bylaw 15.4.1-(b)

Consistent Financial Aid Package:

The financial aid procedures used for student-athletes are the same as the existing official financial aid policies of the institution. Student-athletes and nonathletes should be treated the same.

Bylaw 15.4.1-(b)

ExamplesBylaw 15.4.1-(b)

• Student-athletes are being provided information regarding the institution's appeals process that is not available generally to all prospective students.

Enforcement Review Bylaw 15.4.1-(b)

Self-Assessment Bylaw 15.4.1-(b)

The financial aid procedures used for student-athletes are the same as the existing official financial aid policies of the institution. Student-athletes and nonathletes should be treated the same.

Questions to ask:• What methods are used to determine financial need for need-based aid?• Is there a policy directing the proportion of financial need that will be met

by institutional gift aid?• What are our policies and procedures for awarding nonneed-based aid and

do they differ for any student subpopulation?• What policies and procedures inform our awarding matrix? • How do our policies and procedures remove athletics from consideration in

the admissions rating system prior to financial aid award?

Bylaw 15.4.1-(b)

Bylaw 15.4.1-(c)

Consistent Financial Aid Package:

The financial aid package for student-athletes cannot be clearly distinguishable from packages offered to nonathletes.

Bylaw 15.4.1-(c)

ExamplesBylaw15.4.1-(c)

• XX institution has an international student grant which is provided to any international student who attends XX institution. Of the 20 recipients of the international student grant, 18 are ice hockey student-athletes.

• XX institution provides a diversity grant that ranges in value from $500 to $2,000. Student-athlete's make up 30 percent of the overall recipients of the grant; however, they receive 50 percent of the total dollar amount awarded for the diversity grant.

Enforcement ReviewBylaw15.4.1-(c)

Violation 2005 2006 2007 2008 2009 2010 2011 2012 2013 TotalDistinguishable Pattern

1 0 1 1 2 2 2 2 0 11

Self-Assessment Bylaw 15.4.1-(c)

The financial aid package for a particular student-athlete cannot be clearly distinguishable from the general pattern of all financial aid for all recipients at the institution.

Questions to ask:

• Do student-athletes appear to receive financial aid in a distinguishable pattern compared to other students?

• Do specific athletics teams appear to benefit from specific institutional awards or grants?   We want to be careful using the words preferential and benefits.

Bylaw 15.4.1-(c)

Bylaw 15.4.1-(d)

Consistent Financial Aid Package.

The total award amount given to student-athletes compared to the total award amount given to the overall student population should be proportionate to the number of student-athletes compared to the overall student population.

Bylaw 15.4.1-(d)

Examples Bylaw 15.4.1-(d)

• Student-athletes comprise 30 percent of the overall population at XX institution however student-athletes receive 50 percent of the overall institutional gift aid.

Enforcement Review Bylaw 15.4.1-(d)

Violation 2005 2006 2007 2008 2009 2010 2011 2012 2013 TotalUnjustified proportionality

0 0 2 1 1 1 1 0 0 6

Self-Assessment Bylaw 15.4.1-(d)

The total award amount given to student-athletes compared to the total award amount given to the overall student population should be proportionate to the number of student-athletes compared to the overall student population.

Questions to ask:• What is the percentage of student-athletes in the student-body and

what percentage of total institutional aid do student-athletes receive?• Is there a difference in proportion in the amount given to student-

athletes when compared to the rest of the student population?• What considerations do we make when awarding institutional aid?

Bylaw 15.4.1-(d)

Bylaw 15.4.5Involvement of Department of Athletics Staff:

Athletics staff members are not allowed to have any role in determining institutional aid and are not permitted to modify or arrange financial aid packages.

•Includes:

– Serving on a member institution's financial aid committees; and

• Exception: faculty athletics representative.

– Being involved in a review of a student-athlete's financial aid package.

Bylaw 15.4.5.

Official Interpretation 1/7/2013

Examples Bylaw 15.4.5

• XX institution's coach works part time in the admissions office and is involved in determining an admissions rating for the prospective students that is forwarded to the financial aid office for use in determining financial aid awards.

• XX institution's coach contacts the financial aid office with a list of prospective student-athletes to find out what can be done to make sure his top recruits are receiving the best financial aid packages possible.

• XX institution's coach is providing information to prospective student-athletes that is not generally available to all prospective students regarding the institution's financial aid award appeals process.

Enforcement Review Bylaw 15.4.5

Violation 2005 2006 2007 2008 2009 2010 2011 2012 2013 TotalAthletics Staff Involvement

0 0 1 0 0 0 2 0 0 3

Self-Assessment Bylaw 15.4.5

Athletics staff members are not allowed to have any role in determining institutional aid and are not permitted to modify or arrange financial aid packages.

Questions to ask:• What role do department of athletics staff members play in the award

of financial aid?• Are athletics staff members on our financial aid committee?• Do we have members of the athletics staff also employed by the

admissions department? If so, do employees of the admissions department play a role in the financial aid award process?

Bylaw 15.4.5

New Legislation

Outside Financial Aid – Athletics Criterion

A student-athlete may receive financial aid through an established and continuing program for the recognition of outstanding high school graduates, which may consider athletics leadership, ability, participation or performance, provided the following conditions are met:•The award shall be made on only one occasion but may be disbursed over multiple years;•The recipient's choice of institutions shall not be restricted by the donor of the aid; and•There shall be no direct connection between the donor and the student-athlete's institution.

Bylaw 15.2.3.5NCAA Division III Proposal No. NC-2015-7

Questions